Management of the Agriculture Development Bank (ADB) targets to grow the Bank’s agriculture loan portfolio by 50% by 2022.
The bank which is the single largest investor in agriculture currently has 27.23% of its total loans in the agriculture sector.
This will mean that 50% of the Bank’s entire loan portfolio will go into the agriculture sector by 2022.
30.99% agriculture finance market share
Managing Director of ADB, Dr. John Kofi Mensah who announced this explained that the bank controls 30.99% of agriculture finance market share in Ghana.
GH₵1.3b net loans and advances
Currently, the net loans and advances of the Bank is GH₵1.3 billion (GH₵1,398,193).
Assets of ADB also hit GH₵4.1 billion (GH₵4,140,755).
GH₵3.1b customers’ deposits
Dr. Mensah stated that the bank has experienced significant growth in deposits in the last three years which rose from GH₵2.1billion in December 2016 to GH₵3 billion as at September 2019, representing 42.8% growth.
According to him, this growth has been the result of a combination of deposit mobilization strategies targeted at both the parastatal, corporate, small and medium scale enterprises (SMEs) and retail markets.
Increase in shareholders’ equityThe ADB MD announced that shareholders equity has progressively increased over the period.
“Beyond the initial public offer in 2016, which brought in an additional equity of GH₵200million, the Bank through a rights issue, raised GH₵277million.
With the fresh injection from GAT, the Bank is poised to expand its activities even further,” he added.
Profitability of ADB
From back to back operating losses recorded in 2015 and 2016 respectively, the Bank has since 2017 set itself on a trajectory of profitability, recording GH₵47.3 million in 2017 and GH₵34.1million in 2018 and Dr. Mensah assured that the Bank is well on course to achieve profitability in 2019 as well.
New digital products
The Bank has also added new digital products to its existing E-Business products namely web acquiring service, contactless visa prepaid cards & POS devices and prepaid cards.
Financial Growth Touching on the Bank’s future guided by a five year strategic, he said ADB wants to drive a strong and robust balance sheet with good quality loans with emphasis on Agribusiness and Agriculture Value chain activities.
Increase market share
Dr. Mensah stated that the bank would increase its market share through customer care, service quality and innovative products and services.
Human Capital Development
He emphasized on the need for the Bank to continue to enhance job satisfaction, increase motivation and professionalism of staff.
Prudent information and Risk management
The MD committed to preserve the continuous institution of structures and application to enhance statutory compliance, information flow and frame work to withstand business shocks through prudent risk management, crisis management and reduction in information asymmetry.
Dr. Mensah noted that the Bank had an Agriculture Finance Department located within the Head Office which has been restructured into an Agribusiness Division headed by a General Manager who is part of the Executive Committee.
“The Agribusiness Division has been expanded into two main departments, namely agriculture services and agriculture value chain.
“So far 36 agriculture desks have been set up across branches and more are in the offing .
“Units have also been set up under the agribusiness for specific government initiatives such as 1 District, 1 Factory and Ghana Rubber Estates Limited (GREL) project,” he said.
History of ADB
The Agricultural Development Bank was first established as the Rural Credit Department of the Bank of Ghana in 1964 to study the problems of agricultural credit and prepare the necessary legislation, plans and procedures for the establishment of an Agricultural Credit Bank.
In 1965, the parliament of Ghana passed an act (ACT 286) to incorporate the Agricultural Credit and Co-operative Bank to promote and modernize the agricultural sector.
The Bank started operations in the same year taking the assets and liabilities of the Rural Credit Department of the Bank of Ghana.
In 1967, the original act was amended by a decree NLCD182 and the Bank’s name was changed to the Agricultural Development Bank.
1970, The Agricultural Development (Amendment) Act, 1970 (Act 352) broadened the functions of the Bank.
In 2004, the introduction of the universal Banking Concept under Banking Act, 2004(Act 673 widened scope of the Banks operations.
In the same 2014, the Bank converts into a Liability Company in preparation towards listing on the Ghana stock exchange.
During 2015, the Head Office was moved from the ADB House on the 37 Independence Avenue, Accra to the state of the art building at the Accra Financial Centre.
In 2016, the Bank lists on the Ghana Stock Exchange offering full range of banking products.